CJ CheilJedang said on the 27th it will expand cooperation with "Bach Hoa Xanh," a supermarket chain under Vietnam's largest retail group, "MWG." The move is expected to accelerate the expansion of K-food's footprint in Vietnam.
According to CJ CheilJedang, on the 23rd in Hanoi, Vietnam, it signed a "memorandum of understanding (MOU) for spreading K-food and leading the processed food market" with Bach Hoa Xanh. At the event were Cho Jae-beom, head of the food APAC division at CJ CheilJedang, and MWG Chairman Nguyen Duc Tai. Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources and Vietnam Finance Minister Ngo Van Tuan also attended.
Bach Hoa Xanh operates 2,760 stores across Vietnam. The chain sells CJ CheilJedang's flagship bibigo dumplings as well as rolls, kimchi, and seaweed. Their sales have grown at an average annual rate of 20% over the past four years. Last year, CJ CheilJedang's sales in Vietnam increased about sevenfold compared with 2016.
The two companies plan to pursue initiatives including the joint development of processed foods tailored to the expansion of K-food and Vietnamese consumer trends, as well as ▲ upgrading food, safety, and quality management systems ▲ investing in cold and frozen infrastructure ▲ and joint promotions. Within the Bach Hoa Xanh app (application), they will run a "CJ Zone" to broaden consumer touchpoints both online and offline.
CJ CheilJedang plans to use this partnership to target not only the southern region, including Ho Chi Minh City, but also the northern region and small and midsize provincial cities. In particular, beyond its core frozen and chilled products such as dumplings, kimchi, and rolls, it plans to expand its lineup to include shelf-stable products like noodles and snacks, as well as chilled processed meat products.
A CJ CheilJedang official said, "The partnership with Bach Hoa Xanh will be an important springboard for bibigo to leap forward as a 'national brand of Vietnam,'" adding, "We will lead the market paradigm with products and services optimized for the lifestyle of local consumers."